Course 11 of 20 · Battery and Flexibility Desk Academy

Revenue & Cost Economics

Stage C, Revenue realisation and commercial agreements. Level 6 of 10.

The full revenue and cost build for a flexibility asset, covering cycle cost, charging cost, network and balancing charges and fixed cost, and the margin that survives them.

120 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 02, Course 05, Course 09, Course 10

Enrol or enquire See the 120 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 120 chapters

Open any module for its full chapter list, in teaching order.

M0 What a Flexibility Margin Statement Has to Answer Ch 1-11
  1. The Question a Storage Margin Build Answers
  2. The Discharged Megawatt Hour as the Denominator
  3. Whose Seat the Margin Is Built From
  4. Where a Storage Number Came From Matters More Than Its Size
  5. What an Illustrative Figure Is Allowed to Claim
  6. Revenue, Margin and Return: Three Different Statements
  7. Taking the Specification and the Warranty as Already Read
  8. Taking the Revenue Stack as Already Allocated
  9. A Margin Is Always Attached to a Period
  10. The Assumption This Material Refuses to Make
  11. The Order the Build Is Assembled In
M1 Revenue Posted Into the Build Ch 12-22
  1. Gross Revenue Before Anything Is Deducted
  2. Energy Arbitrage Revenue as a Gross Sale Line
  3. Availability Revenue Earned Without Moving Energy
  4. Utilisation Payments and the Energy They Oblige
  5. Capacity Payments as an Annual Line Spread Over Periods
  6. Revenue Reduced by a Performance Measurement
  7. Revenue Booked Against Revenue Received
  8. A Revenue Line You Did Not Earn on Purpose
  9. Grouping Revenue by What It Costs to Earn
  10. Revenue Guaranteed by Somebody Else
  11. The Revenue Block Closed on One Illustrative Sheet
M2 The Charging Cost Line Ch 23-33
  1. More Energy Goes In Than Comes Out
  2. Dividing the Charging Price by Efficiency, Not Multiplying
  3. Which Losses the Contracted Figure Already Includes
  4. Parasitic Load the Asset Draws While Doing Nothing
  5. Which Market the Charging Energy Was Bought In
  6. A Blended Charging Price Across Many Fills
  7. Charging Energy That Arrived Free or Paid You to Take It
  8. Charging Inside an Ancillary Commitment
  9. Efficiency That Is Worse Than the Datasheet Says
  10. Efficiency Measured at the Meter, Not at the Cell
  11. The Charging Block Added to the Sheet
M3 Cycle Cost Derived From the Warranty Allowance Ch 34-46
  1. Why a Notional Wear Figure Is Not Good Enough
  2. The Allowance Is a Finite Stock You Are Spending
  3. Pricing the Allowance From What Restoring It Costs
  4. Dividing a Replacement Cost by an Allowance
  5. Cycle Count Against Energy Throughput as the Divisor
  6. A Deeper Cycle Earns More and Costs More
  7. Partial Cycles and How the Warranty Counts Them
  8. Calendar Ageing Charged to Time Rather Than Use
  9. Augmentation Against Wholesale Replacement
  10. The Augmentation Decision Priced Against the Allowance
  11. The Allowance That Expires Unused
  12. Conditions That Void the Allowance Rather Than Spend It
  13. The Cycle Cost Block Added, With Every Assumption Named
M4 Charges on Import, on Export, or on Both Ch 47-57
  1. A Charge Can Apply to Energy In, Energy Out or Both
  2. Reading the Charging Statement Course Four Handed You
  3. Charges Assessed on Connection Size Rather Than Flow
  4. A Charge Levied at the Moment of Peak Demand
  5. Being Charged as Demand and Paid as Generation at Once
  6. Levies and Policy Costs Riding on Imported Energy
  7. Imbalance Cost as a Line in the Build
  8. Market, Exchange and Metering Fees Nobody Budgets
  9. Losses Between the Asset and the Settlement Point
  10. Timing Activity to Avoid an Avoidable Charge
  11. The Charges Block Added in Both Directions
M5 Fixed Cost and the Annual Charge Ch 58-67
  1. The Cost of Owning an Idle Asset for a Year
  2. The Service Agreement and What It Actually Charges On
  3. Insurance on an Asset That Can Burn
  4. Land, Lease and the Rent a Compound Pays
  5. Property Charges and Local Taxes on Plant
  6. The Standing Charge for Having a Connection at All
  7. Asset Management, Monitoring and the People Behind It
  8. Scheduled Replacement of Equipment That Is Not the Cells
  9. Decommissioning and the Obligation at the Far End
  10. Turning an Annual Fixed Cost Into a Per-Megawatt-Hour Charge
M6 The Margin That Survives Ch 68-78
  1. Deducting Everything From the Revenue Block
  2. Ordering the Lines So the Statement Can Be Read
  3. Margin Per Discharged Megawatt Hour
  4. Margin Per Megawatt of Rating Per Year
  5. Gross Margin Before Fixed Cost, and Why It Is Quoted
  6. A Period Whose Margin Came Out Negative
  7. The Difference Between a Bad Month and a Bad Asset
  8. Attributing the Margin Between Activity and Standing Still
  9. Comparing This Month Against Last Month Honestly
  10. Reconciling the Margin to the Settled Revenue
  11. The Statement a Board Will Actually Read
M7 Reading the Build for a Decision Ch 79-89
  1. The Average Cost and the Cost of the Next Cycle Are Not the Same
  2. The Spread One Cycle Has to Clear
  3. Why That Threshold Moves Through the Day
  4. Choosing How Deep to Go on This Movement
  5. The Cost of Holding Charge Rather Than Selling It
  6. Valuing the Right to Wait by Averaging Its Payoffs
  7. Allowance Left as a Budget for the Rest of the Year
  8. When Standing Idle Is the Profitable Choice
  9. Pricing an Ancillary Commitment Against the Cycles It Blocks
  10. Quoting a Price for Flexibility Somebody Asked For
  11. Three Decisions Worked on One Illustrative Day
M8 Where Every Number Came From Ch 90-99
  1. The Inputs a Flexibility Build Cannot Guess
  2. Grading an Input by the Evidence Behind It
  3. A Staleness Rule for Each Class of Input
  4. What a Market Report Can and Cannot Supply
  5. Refusing a Number That Arrived in a Presentation
  6. Deriving an Input Rather Than Looking It Up
  7. Reporting a Band Instead of a Point
  8. Which Input Would Change the Answer Most
  9. Two Builds of the Same Asset That Disagree
  10. Keeping the Input Register Current Between Builds
M9 Allocating Cost Across a Stacked Position Ch 100-109
  1. One Asset, Several Services, One Set of Costs
  2. Costs That Can Be Traced to One Service
  3. Costs That Cannot Be Traced and Must Be Shared
  4. Sharing by Capacity Reserved Rather Than Energy Moved
  5. The Service That Looks Profitable Because It Was Charged Nothing
  6. Attributing Allowance Consumption to the Instruction That Caused It
  7. The Cost of Being Ready and Never Called
  8. A Per-Service Margin Statement
  9. Dropping a Service on the Strength of Its Margin
  10. Allocation for Reporting Against Allocation for Deciding
M10 A Worked Build, and What It Cannot Settle Ch 110-120
  1. A Worked Build, Part One: The Asset and the Period
  2. A Worked Build, Part Two: Revenue and Charging
  3. A Worked Build, Part Three: Wear and Charges
  4. A Worked Build, Part Four: Fixed Cost and the Margin
  5. The Same Month With a Different Allowance Basis
  6. The Same Month Costed by Somebody Who Guessed the Wear
  7. Presenting the Build to People Who Will Attack It
  8. Where the Argument Usually Lands
  9. What This Build Cannot Tell You
  10. Where a Cost-Based Reading Fails Outright
  11. Handing the Margin to the Courses That Build On It

The brochure gives each of these 120 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 11 of twenty

It stands alone, and it is also the entry point to the Battery and Flexibility Desk Academy pathway.

Enrol or enquire See the whole pathway